Ensuring U.S. Authority over U.S. Banking Regulations Act

Bill Number

H.R. 3355

Origin Chamber

House

Congress

119th Congress, Session 1

Policy Area

Finance and Financial Sector

Status

Introduced

Latest Action

2025-05-13: Referred to the House Committee on Financial Services.

Last Updated

2025-05-28T12:56:52Z

AI-Generated Summary

Purpose of the Legislation

The "Ensuring U.S. Authority over U.S. Banking Regulations Act" (H.R. 3355) aims to increase congressional oversight of federal banking agencies when they create rules based on recommendations from non-governmental international organizations. It also requires these agencies to report on their interactions with certain international groups, particularly regarding climate-related financial risks, to ensure greater transparency and accountability in U.S. banking regulations.

Key Provisions

• Rulemaking Requirements for Major Covered Rules (Section 2):
• Applies to five federal banking agencies: the Board of Governors of the Federal Reserve System (Fed), Office of the Comptroller of the Currency (OCC), Federal Deposit Insurance Corporation (FDIC), National Credit Union Administration (NCUA), and Federal Housing Finance Agency (FHFA).
• These agencies cannot propose or finalize a "major covered rule" without providing at least 120 days' advance notice to the House Committee on Financial Services and the Senate Committee on Banking, Housing, and Urban Affairs.
• The notice must include testimony and a detailed economic analysis, covering projected costs, effects on specific industries (sectoral effects), availability of credit, gross domestic product (GDP, a measure of the total value of goods and services produced in the U.S.), and employment.
• A "major covered rule" is defined as one that the agency determines will have an aggregate economic impact of $10 billion or more on the U.S. economy over 10 years and is intended to align with recommendations from non-governmental international organizations, such as the Financial Stability Board (FSB), Bank for International Settlements (BIS), Network of Central Banks and Supervisors for Greening the Financial System (NGFS), or Basel Committee on Banking Supervision.

• Reporting on Climate-Related Interactions (Section 3):
• Federal banking regulators (the same five agencies listed above) are prohibited from meeting or engaging with "covered international organizations" on climate-related financial risk (e.g., risks to the financial system from climate change) during a calendar year unless they first submit an annual report to the same congressional committees.
• The report must describe the agency's participation in the organization's activities (including any task forces or committees) from the previous year and provide a detailed accounting of the organization's funding sources, both governmental and non-governmental.
• Covered international organizations include the FSB, NGFS, and Basel Committee on Banking Supervision.

Significant Changes to Existing Law

• Amends specific statutes for each of the five agencies (e.g., Federal Reserve Act, Revised Statutes for OCC, Federal Deposit Insurance Act for FDIC) to insert new subsections requiring the 120-day notice and economic analysis for major covered rules—provisions that did not previously exist.
• Introduces a new reporting mandate under Section 3, which adds transparency requirements for climate-related engagements, previously unregulated in this manner.
• These changes create procedural barriers and disclosure obligations specifically tied to international non-governmental influences, shifting from agency discretion to mandatory congressional involvement.

Potential Impacts

• On Government Agencies: The requirements could delay rulemaking processes by up to 120 days and increase administrative burdens through mandatory analyses and reports, potentially slowing the adoption of international standards in U.S. banking rules.
• On Citizens and the Economy: Rules subject to this act may affect credit access, job markets, and overall economic growth (as analyzed in required reports), potentially leading to more cautious regulations that prioritize U.S.-specific economic projections over global recommendations.
• On International Relations: By scrutinizing engagements with organizations like the FSB and NGFS, the law may reduce U.S. participation in global financial coordination, signaling a preference for national sovereignty and possibly straining diplomatic ties with international partners focused on issues like financial stability and climate risk.

Main Stakeholders Affected

• Federal Banking Agencies: The Fed, OCC, FDIC, NCUA, and FHFA, which must comply with new procedural and reporting rules.
• Congressional Committees: House Financial Services and Senate Banking, Housing, and Urban Affairs, gaining enhanced oversight and information access.
• Banking and Financial Sector: Banks, credit unions, and housing finance entities regulated by these agencies, potentially facing altered rules with more U.S.-centric economic considerations.
• International Organizations: Groups like the FSB, NGFS, and Basel Committee, whose influence on U.S. policy may be curtailed through increased scrutiny.
• U.S. Taxpayers and Economy: Indirectly affected through potential changes in credit availability, GDP, and employment tied to regulated financial activities.

Notable Legal, Constitutional, or Political Implications

• Legal Implications: Strengthens procedural requirements under administrative law (rules governing how agencies make regulations), potentially making it easier for Congress or affected parties to challenge rules via lawsuits if agencies fail to comply with notice or analysis mandates.
• Constitutional Implications: Enhances congressional oversight of executive branch agencies, aligning with separation of powers principles by reasserting legislative authority over rulemaking influenced by external entities, though it could raise questions about encroachments on agency independence.
• Political Implications: Promotes U.S. sovereignty in banking regulation by targeting non-governmental international influences, particularly on emerging issues like climate risk, which may reflect broader debates on globalism versus national control without endorsing any partisan view.

This summary was generated by AI and may contain inaccuracies. Refer to the official source document for the authoritative text.

Sponsor

Rep. Loudermilk, Barry [R-GA-11]

Recent Actions

• 2025-05-13: Referred to the House Committee on Financial Services.
• 2025-05-13: Introduced in House
• 2025-05-13: Introduced in House

Bill Versions

• Ensuring U.S. Authority over U.S. Banking Regulations Act — issued 2025-05-13 — PDF (10 pages)